FIA, the world governing body for motor sport, has directed the Federation of Motor Sports Clubs of India (FMSCI) and the Motor Sports Association of India (MAI) to merge under the chairmanship Vijay Mallya.
The FIA has set a September 1 deadline for the two rival bodies, who are involved in a tug of war for control of motor sport in the country, failing which they could be de-recognized and a third alternative appointed in their place.
The decision of the FIA comes after a meeting of the World Motor Sports Council in Paris on July 5, a statement from from Vijay Mallya, who was present at the meeting, said.
The MAI was represented by its president, Nazir Hoosein, and the FMSCI by its chief Rajat Mazumdar.
A piquant situation had emerged following the tussle between the two bodies. While MAI is the sole representative body of the FIA, the FMSCI is recognised by the Indian government.
"As desired by the FIA, I am committed to finding an acceptable and permanent solution and I hope that all previously conflicting parties cooperate in the interest of Indian motor sport," Mallya said in the statement.
"It is my dream to bring Formula 1 to India and this will not be possible if conflicts continue," he said.
Merger talks between the FMSCI and MAI are expected to commence within the next two weeks, the statement added.